The US will ban many goods from Canada from 29 September. These goods include some milk products, beer, wine, rum, vodka, motorbikes, and mopeds. US President Donald Trump says Canada does not treat US goods fairly.

The US will also put higher taxes on Canadian cheese, paper, furniture, metals, boats, and golf carts. Last month, the US put a 50% tax on about $20 billion of Canadian goods. Canada answered with new taxes on US steel, clothes, and furniture. These taxes started on Tuesday.

Canada sends more than two-thirds of its exports to the US. Businesses in both countries fear higher prices and fewer customers. Canadian Prime Minister Mark Carney says moving trade away from the US will cost money. Both countries say they want a new trade deal, but they have not planned new talks.